CBRE cuts RevPAR growth forecast to 1.2 percent for 2024

BRE HOTELS RECENTLY reduced U.S. hotel forecast as lodging demand dips amid soft leisure travel and slower corporate profit growth. The upcoming election
in November and other economic factors led to the revisions.

The research group now projects a 1.2 percent RevPAR increase for 2024, down from 2 percent in May. However, it expects a 2 percent RevPAR growth in the second
half of 2024, up from 0.5 percent in the first half, driven by international tourism and election events.

Lodging industry performance is closely linked to economic strength, with GDP growth generally correlating with RevPAR growth, CBRE said in a statement. The
company forecasts 2.3 percent GDP growth and 3.2 percent average inflation for 2024.

“We expect low single-digit RevPAR growth over the near-term as election-related events, growth in inbound international travel and an anticipated lower interest
rate environment should support hotel demand,” said Rachael Rothman, CBRE’s head of hotel research and data analytics. “Challenges including weakening consumer
spending and increased competition from short-term rentals, cruise lines and other lodging alternatives pose downside risks.”